Communist China accuses U.S. of over regulation and blackmail

In a twist of irony, communist China which runs a centralized economic policy, has criticized the U.S. a champion of free market principles for imposing too many regulations which it described as "destructive and counter-productive" on the financial world, AsianInvestor.net reported.

Speaking at the Asian Financial Co-operation Conference organized by the Boao Forum for Asia in Mumbai, Jin Liqun, head of China Investment Corporation, Beijings $410bn sovereign wealth fund declared, "Over-regulation and inappropriate intervention are the major risks to the global recovery and threaten the efficient operation of the financial system. In the US and Europe, over-regulation is all the rage. Excessive regulation in any sector is detrimental to the economy, just as excessive taxation is destructive."

According to Jin, Western governments are supposedly championing free markets but in reality, their actions are preventing free flow of capital. He continued, "There is a discrepancy. On the one hand people cling to Western economic theories of free markets. On the other hand the governments and the regulators in the West are tightening their control of capital flows. "

In July 2011, U.S. President Barack Obama signed into law the DoddFrank Wall Street Reform and......................